7/19/2009 10:45:22 AM

Are we moving out of cash?

Welcome to Lynn T's 1-2-3 PLUS Alert. To learn more about my Partial Leverage Utilization System, click here.

That's a good question to ask. Looking back at the action the markets just took one can be torn. With such a sizeable move higher, will there be an equal pullback or will the market continue higher? Good thing we don't look back, only forward. Another good thing is that we have my 1-2-3 PLUS Alert system taking the emotion out of the decision.

All but one of my indicators are at a standstill. Reminds me of when I'm hesitant to jump into the pool because it feels very cold on my toes, my indicators are legging us into the trading pool, 1/3 at a time. We'll just have to see if a bear does a cannonball, splashing the bulls and scaring them out of the pool for a bit.

Add 1/3 Bullish Bearish position (see new weighting below).

Current Weighting Suggestion:

1/3 in Bullish Leverage
2/3 in CASH mode

Long Term Investor Buy Signal Alert

Over the past several years, this indicator has predicted several 100-point or more moves in the S&P. There are only 2 to 3 of these signals every year, so they're worth paying attention to. This is an ideal signal for investors to put cash to work following a down move in the market.

A Long Term Investor Buy Signal Alert was issued March 18, 2009.

In 2008 we had two signals; one on October 29, 2008 and one on July 23. The long term investor buy signal that was issued on July 23 ended with S&P up 62 points.

Long Term Investor Crash Warning Indicator

This indicator is a variation of the widely published Hindenburg Omen. We'll let you know when we're seeing indications of a potential crash to come. This would be a good time for long term investors to take some money off the table.

This indicator is not coming into play at this point in time.

You can email me with any questions at plus@stockbarometer.com.

Have a great week!

To learn more about my Partial Leverage Utilization System, click here. This service is available for $21.95/month or $209/year. To try my service, click here.